Cosco Capital earnings flat at P1.5B in H1

MANILA, Philippines - Profits of Cosco Capital Inc., the investment vehicle of retail magnate Lucio Co, barely changed in the first half as the retail business posted lower income contribution.

The company’s first semester earnings hit P1.5 billion, slightly up from P1.49 billion year-on-year, it said in a disclosure to the stock exchange.

“The group posted a revenue of P40.6 billion in the six-month period. This is a 16-percent increase from last year’s P35 billion of the same period brought about by growth in various business segments,” Cosco Capital said.

“The increase was generally attributable to newly-opened stores and acquisitions for retail, sales volume growth for liquor and newly-completed properties for lease and addition of NE Pacific Mall for real estate,” it added.

Revenues rose by P5.7 billion for the retail segment, P53 million for the real estate, P115 million for liquor and P65 million for holding, oil storage and mining.

However, cost of sales rose 16 percent to P33.47 billion from P28.46 billion, faster than the revenue growth in the first half.

Specifically, the retail segment through Puregold Price Club Inc. posted a 6.54-percent drop in consolidated net income to P1.65 billion from P1.77 billion in the absence of one-time interest income recognized from short-term investments last year.

Consolidated net sales of the country’s second largest grocery chain rose 16.8 percent to P38.5 billion from P33 billion due to the income contribution from new stores.

For the real estate segment, Cosco Capital said its net income climbed 23 percent to P389 million from P316 million while revenues improved six percent to P927 million from P874 million.

“The addition of NE Pacific Shopping Centers Corp. and the opening of Fairview Terraces contributed in the increase of the segment’s revenues,” Cosco Capital said. In March, it acquired the 35,000-square meter NE Pacific, the largest commercial mall in Nueva Ecija.

Net income of the liquor distribution business jumped 16 percent to P173 million as revenues picked up eight percent to P1.51 billion from P1.4 billion.

The group’s specialty retail segment, which refers to Office Warehouse, generated P121 million in revenues and P3 million in net income in May and June, Cosco Capital said.

Aside from Puregold, the company is also into liquor importation (Premier Wine & Spirits Inc.), commercial real estate, oil storage and oil exploration activities.

Cosco Capital claims to be the country’s leading importer of liquor with exclusive distribution rights for some of the world’s top brands such as Cuervo, Jim Beam, Fundador, Absolut Vodka, Johnny Walker, Chivas Regal and Alfonso.